Question
Kevin's Electronics, Inc., delivered 1,200 custom-designed computer monitors to itscustomer, GadgetsGalore . The following cost information was compiled in connection with thisorder: Direct Materials Used
Kevin's Electronics, Inc., delivered 1,200 custom-designed computer monitors to itscustomer, GadgetsGalore. The following cost information was compiled in connection with thisorder:
Direct Materials Used
PartA327: 1 unit costing $56 per monitor
PartB149: 1 unit costing $98 per monitor
Direct Labor Used
Assembly:6 hours per monitor at the rate of $8 per hour
Inspection:2 hour per monitor at the rate of $12 per hour
Inaddition, the company applies manufacturing overhead costs to jobs at the rate of $5 per direct labor hour. The selling price for each monitor is $385.
Requirements
(a) Determine the total cost for this job.
(b) Determine the gross margin per monitor.
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